Health Catalyst initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of Health Catalyst with an Overweight rating and $16 price target. The firm sees several underappreciated growth levers on the horizon that could enable Health Catalyst to achieve its long-term target of 20% revenue growth and is more optimistic than consensus about a return to a normal pipeline following conversations with large payors/providers that indicate margin compression at its clients could be coming to an end, the analyst tells investors in a research note. The firm sees potential for a bull case scenario of $412M in revenue in 2025, $40M above consensus and in line with long-term growth guidance of 20%, if rate relief provides margin improvement for Health Catalyst’s provider clients.